Cisco Turns 40 and Celebrates by Redefining its Purpose Goals

Cisco turns 40 this month and is celebrating by doing what Cisco has always done: renewing its commitment to innovation, inclusion, and sustainability. I’ve been a Cisco watcher for a long time, and over the past four decades, Cisco has transformed how people connect, collaborate, and work. In its newly released FY24 Purpose Report, Cisco reflects on the company’s technological advancements and sets new goals to address the challenges and opportunities of the next era.

Cisco has always focused on using its technology and resources to make the world a better place. Even when the company was much smaller, CEO John Chambers would continually talk about how the Internet would change how we “work, live, learn and play.” Chuck Robbins took the CEO helm in 2015 and has taken the purpose-driven aspect of Cisco to another level. In 2016, the company set a goal of positively impacting 1 billion people by 2025, and it hit that goal early. During the pandemic, Cisco shifted its mission from work, live, learn, and play to “powering an inclusive future for all.” Cisco has always viewed the Internet and networks as equalizers, but it is now taking a more active approach.

Cisco to Engage 40 Global Communities

As part of its 40th anniversary activities, Cisco launched a new ambition: over the next decade, Cisco intends to engage, support, and invest in 40 global communities. Cisco has historically been active in many communities around the globe. In a briefing with analysts, Brian Tippens, SVP and Chief Social Impact and Inclusion Officer told us, “We could continue to scale our impact through individuals but chose to focus on communities. We’ve been thinking more about building resilience in communities and the impact we could have if we showed up in force to drive meaningful change.”

One example he cited was the city of San Jose, where Cisco is headquartered. He stated, “We are a big employer but also a big giver to the community through several different causes around skills and education and bridging poverty gaps. But we also do a lot of work in low-income housing with organizations like Destination: Home, so we have been working to scale this model globally.”

Central to Cisco’s mission is creating meaningful connections. Since 2005, when it provided communications equipment to first responders during Hurricane Katrina, Cisco has become a disaster response and recovery leader. Cisco’s efforts have grown to encompass global crises, helping communities in need rebuild with reliable connectivity. This extends to bridging the digital divide and fostering fair access to technology for underserved populations worldwide.

Cisco’s investments in education exemplify this mission. The Cisco Networking Academy has been a cornerstone of the company’s efforts to empower individuals through digital skills. Since its inception, the program has trained over 24 million students and intends to reach 25 million more by 2032. Cisco prepares a new generation for the digital world by equipping people with essential tech skills. Over 80 percent of Cisco employees have participated in community impact programs for five years.

Addressing Climate Issues

Cisco is also taking steps to address the global climate crisis. The company has set an ambitious target of achieving net-zero greenhouse gas (GHG) emissions across its value chain by 2040. Significant progress has already been made, including a 73 percent reduction in Scope 1 and 2 emissions.

Sustainability is embedded in every aspect of Cisco’s operations, from circular design principles in product development to investments in renewable energy and energy efficiency. Currently, 96 percent of new products and packaging align with circular design principles. Cisco plans to invest $39 million in renewable energy, energy efficiency, and building and fleet electrification projects between fiscal 2023 and 2025. Renewable energy powers 96 percent of Cisco’s global electricity use, supported by on-site solar, green power contracts, and long-term agreements. These include a 37-megawatt (MW) solar plant in Spain. They are also driving the development of a new 92-MW solar-wind facility in India in fiscal 2025. Meanwhile, Cisco’s Texas solar development partnership is expected to generate 180 MW of energy and achieve commercial operation in fiscal 2026.

Cisco and its Office of Accessibility

These efforts are mirrored in Cisco’s approach to accessibility. In 2024, the company established the Office of Accessibility to integrate accessibility into its products, websites, and documentation. Cisco works with its disabled and neurodivergent communities to build solutions that meet the needs of all people. The company also evaluates emerging technologies like artificial intelligence (AI) to gauge their accessibility and evaluate how neurodivergent users and users with disabilities can have more options to engage with its products.

On the AI front, Cisco published its commitment back in 2018 to respect human rights in the design, development, and use of AI. Then, in 2022, Cisco introduced its Responsible AI (RAI) Principles, supported by a robust framework. The company has improved its AI risk assessment process to apply the principles in product development, vendor partnerships, and operations.

Cisco’s recent acquisition of Splunk, a software company that analyzes and visualizes machine-generated data, offers an opportunity to amplify these efforts further. Splunk’s expertise in data solutions aligns with Cisco’s vision of a more connected world. The companies plan to tackle challenges such as bridging the digital divide, advancing sustainable practices, and promoting inclusion.

Despite all the good Cisco and other large companies have done, there has been some scrutiny around purpose-driven initiatives, with employees, shareholders, and other stakeholders wondering if there is a payback to all the resources companies invest in initiatives like this. From my perspective, if companies like Cisco do not focus on solving the world’s biggest problems, then who will? Governments can run some social programs but do not have the global reach of Fortune 500 companies.

However, I understand that Cisco is running a business, and I asked Fran Katsoudas, Cisco’s EVP and Chief People, Policy and Purpose Officer, about this. She told me that purpose initiatives can benefit the world and business. She provided an excellent example, “From a social justice perspective, we work with our partners to support HBCUs through our technology and services what we saw as a significant number of cyber-attacks directed at the schools. Our initial investment in them allowed them to qualify for federal dollars they had not had access to before. That created a win-win as we made the initial investment, but we were top of mind when they decided to spend additional money.”

A Final Word on Cisco at 40

Cisco is now 40, and it doesn’t appear that a mid-life crisis is imminent. The company has been and continues to be committed to using its technology and resources to improve the world. Focusing on communities is a unique approach and should have longer-lasting benefits for the areas in which they invest. As Cisco has demonstrated, purpose is good for the world and business.

Zeus Kerravala is the founder and principal analyst with ZK Research.

Read his other Network Computing articles here.